Question

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Answer 1

The growth in global trade post 2000 is mainly due to the opening up markets(i.e free trade policies being adapted) by most of the nations in the world.The doubling of trade can be attributed to a greater integration of markets and increasing globalisation. As globalisation increases people tend to demand more goods from all across the world and their taste and preferences change accordingly, there by higher movement of goods and services take place among nations. This has been explained by Paul Krugman, the Nobel laureate un Economics that how imperfect competition, geography and and factors like demand will increase trade among nations. The single most important factor behind the growth in trade acrethe globe can be the technological advancements and the benefits of it.

The growth of trade is likely to continue because as trade increases among the nations, they become increasingly dependent on each other and end up having more trade with the passage of time. Though there is an issue of rising protectionism in the world due to short sightedness of countries but this is going to be short lived. Growth of free trade will prevail as human societies progress.